Fed’s Mester Sees Easing Policies Lasting Very Long Time

The President of the Federal Reserve Bank of Cleveland, Loretta Mester, said on Monday that the Fed will maintain its monetary easing policies for a very long time to help the economy achieve the inflation and employment goals set by the central bank, Reuters reported.

Mester believes that economic activity could recover during the second half (H2) of 2021, when the majority of Americans have been vaccinated, stressing the need for increased government support.

“We’re going to be accommodative for a very long time because the economy just needs it to get back on its feet.”

In addition, the President of the Cleveland Fed said that any surge in inflation soon would not last long and would only reflect a recovery from the early days of the pandemic.

When asked about the stock market volatility and the recent GameStop trading frenzy, she revealed that she did not expect an impact on monetary policy, noting that the Department of the Treasury and the Fed will cooperate to help protect investors.

“We want them to make sure the game being played is a fair game.”